KakaoBank (323410) Q3 2024 earnings summary

Executive summary

• Achieved record operating profit of ₩173.7 billion in Q3 2024, up 36% year-over-year, driven by strong customer engagement and growth in fee and platform business.

• Customer base reached 24.43 million, with MAU at 19.71 million and WAU at 13.52 million, both increasing after the August launch of the benefits tab and home screen renewal.

• Expanded platform business, including securities account openings (6.91 million cumulative) and new digital products.

• Recognized for innovation and customer satisfaction, winning multiple industry awards in the past three years.

Financial highlights

• Operating revenue for Q3 was ₩746.3 billion, up 14% year-over-year and 2% quarter-on-quarter, supported by growth in interest, fee, and platform revenues.

• Net profit increased 30% year-over-year and 3% quarter-on-quarter to ₩124.2 billion; operating profit up 36% year-over-year and 2% quarter-on-quarter to ₩173.7 billion.

• Deposit balance totaled ₩54.3 trillion, up 18.9% year-over-year and 2% quarter-on-quarter, with low-cost demand deposits rising to 57.9% of the mix.

• Loan balance reached ₩44.54 trillion, up 16.4% year-over-year and 1% quarter-on-quarter, led by SOHO and unsecured personal loans.

• Net interest margin (NIM) was 2.15% for Q3 and 2.17% for the nine months, down from 2.39% year-over-year.

Outlook and guidance

• Expects continued growth in traffic and platform-driven business as new services expand, with a focus on asset management and non-interest income.

• Plans to increase the number of financial partners and expand loan comparison services to include home mortgage loans, aiming for significant revenue growth.

• Anticipates similar SOHO loan growth in 2025, supported by new product launches and strong partnerships with regional credit guarantee foundations.

• Credit cost for full-year 2024 expected to improve to around 0.65–0.66%, down from 0.75% in 2023.

• Focus on customer engagement through rewards, digital coupons, and lifestyle services to boost app traffic and transactions.